Quick Reference — Most Searched Insurance Abbreviations
India mein sabse zyada searched insurance terms. Koi bhi policy khareedne se pehle yeh jaanein.
| Abbr. | Full Form | Hindi | Hinglish | Why It Matters |
|---|---|---|---|---|
| IDV | Insured Declared Value | बीमित घोषित मूल्य | Gaadi ki current value — max claim payout | Decides your car's claim payout |
| NCB | No Claim Bonus | बिना क्लेम बोनस | Claim-free year pe discount 20-50% | Up to 50% discount on OD premium |
| PED | Pre-existing Disease | पूर्व-मौजूदा बीमारी | Policy se pehle ki bimari | Must declare — else claim rejection |
| CSR | Claims Settlement Ratio | क्लेम निपटान अनुपात | Kitne percent claims settle hue | Higher = more reliable insurer |
| ICR | Incurred Claims Ratio | व्यय क्लेम अनुपात | Claims paid vs premium collected | 60-90% = healthy insurer |
| TP | Third-Party Insurance | थर्ड-पार्टी बीमा | Dusre ko nuksan cover — mandatory | Mandatory by law for all vehicles |
| OD | Own Damage | स्वयं की क्षति | Apni gaadi ka nuksan cover | Covers your own vehicle damage |
| Zero Dep | Zero Depreciation | शून्य मूल्यह्रास | No depreciation cut on parts | Full claim without depreciation cut |
| Copay | Co-payment | सह-भुगतान | Claim ka % aapko khud dena | Reduces premium but increases out-of-pocket |
| RTI | Return to Invoice | इनवॉइस वापसी | Chori/total loss pe full invoice value | Get full car price if stolen/totalled |
Motor Insurance Terms
Vehicle insurance terminology — IDV, NCB, TP, OD, Zero Dep, aur more.
Add-on Cover
अतिरिक्त कवर🗣 Extra cover jo base policy ke saath khareed sakte hain
Optional extra cover that enhances your base insurance policy. Add-ons increase your premium but provide additional benefits.
Example:
Zero Depreciation, Engine Protection, and Roadside Assistance are popular add-ons.
IDV (Insured Declared Value)
बीमित घोषित मूल्य🗣 Aapki gaadi ki current market value — max claim amount
The current market value of your vehicle — the maximum amount your insurer will pay if stolen or totalled. IDV = Ex-showroom price minus depreciation.
Example:
₹10L ex-showroom car after 2 years → IDV ≈ ₹8L (after 20% depreciation).
NCB (No Claim Bonus)
बिना क्लेम बोनस🗣 Claim-free year pe discount — 20% se 50% tak
A discount on Own Damage premium for every claim-free year: 20% after 1 year, up to 50% after 5+ years. NCB belongs to you, not the vehicle.
Example:
After 5 claim-free years, 50% discount on ₹15,000 OD premium = saving ₹7,500.
OD (Own Damage)
स्वयं की क्षति🗣 Aapki apni gaadi ka nuksan cover
The component of motor insurance that covers damage to your own vehicle from accidents, theft, fire, and natural calamities.
Example:
A tree falls on your parked car — OD cover pays for the repair.
TP (Third-Party Insurance)
थर्ड-पार्टी बीमा🗣 Dusre ko nuksan hone pe cover — mandatory by law
Mandatory motor insurance covering your legal liability for injury, death, or property damage to third parties. TP rates are fixed by IRDAI.
Example:
Your car hits a pedestrian — TP covers the pedestrian's medical expenses.
Zero Depreciation
ज़ीरो डेप्रिसिएशन🗣 Claim pe koi depreciation cut nahi — full payment
An add-on where the insurer pays full cost of parts replacement without deducting depreciation. Available for vehicles up to 5-7 years old.
Example:
Without Zero Dep: ₹30K bumper → you pay ₹15K. With Zero Dep → you pay ₹0 (only compulsory deductible).
Health Insurance Terms
Health insurance terminology — PED, copay, waiting period, cashless, aur more.
Cashless Claim
कैशलेस क्लेम🗣 Bina paishe diye claim — insurer directly pays hospital/garage
A claim where the insurer settles the bill directly with the hospital or garage. You don't pay upfront except for deductibles/co-pay.
Example:
You get treated at a network hospital and the insurer pays the hospital directly.
Co-payment (Co pay)
सह-भुगतान🗣 Claim ka ek hissa aapko khud dena padta hai
The fixed percentage of the claim amount that you must pay from your own pocket. Policies with co-pay have lower premiums.
Example:
With 20% co-pay on ₹2L bill, you pay ₹40,000 and insurer pays ₹1,60,000.
PED (Pre-existing Disease)
पूर्व-मौजूदा बीमारी🗣 Policy se pehle se maujood bimari — diabetes, BP, etc.
Any health condition that existed before the insurance policy start date. Most insurers cover PEDs after a waiting period of 1-4 years.
Example:
You have diabetes before buying health insurance. After 2-year waiting period, diabetes treatment is covered.
Portability
पोर्टेबिलिटी🗣 Insurer change karo bina waiting period lose kiye
The right to switch health insurance from one insurer to another while retaining accumulated benefits like waiting period credits.
Example:
Switch after 3 years — your 3-year waiting period credit carries over to new insurer.
Room Rent Cap
कमरा किराया सीमा🗣 Maximum room rent jo insurance cover karega per day
The maximum daily room charge your health insurance will cover, usually 1-2% of sum insured.
Example:
₹5L policy with 1% cap → insurer covers up to ₹5,000/day room charges.
Waiting Period
प्रतीक्षा अवधि🗣 Wo time jab certain benefits available nahi hote
The time period during which certain benefits are not available. Common: Initial 30 days, PED 1-4 years, Specific diseases 1-2 years.
Example:
2-year PED waiting period → diabetes treatment not covered for first 2 years.
Reimbursement Claim
प्रतिपूर्ति क्लेम🗣 Pehle aap pay karo, baad mein insurer refund kare
A claim where you pay the hospital first, then submit bills to the insurer for repayment. Works at any hospital.
Example:
Pay ₹2L at non-network hospital. Submit bills. Get ₹1.8L reimbursed (after co-pay).
Restore Benefit
रिस्टोर लाभ🗣 Sum insured khatam hone pe dobara restore hota hai
A feature in health insurance that automatically reinstates your sum insured if it gets exhausted during the policy year.
Example:
₹10L family floater fully used → Restore benefit adds another ₹10L for future claims.
Life Insurance Terms
Life insurance terminology — riders, surrender value, bonus, aur more.
Rider
राइडर🗣 Life insurance ke saath extra benefit add karna
An optional add-on to a life insurance policy providing additional benefits like Critical Illness, Accidental Death, Waiver of Premium.
Example:
Add Critical Illness Rider of ₹25L to ₹1 crore term plan for just ₹1,500/year.
General Insurance Terms
General insurance terms — premium, CSR, ICR, solvency ratio, aur more.
CSR (Claims Settlement Ratio)
क्लेम निपटान अनुपात🗣 Kitne percent claims insurer ne settle kiye
The percentage of insurance claims an insurer settles out of the total claims received in a year. Higher CSR = more reliable insurer.
Example:
If an insurer received 1,000 claims and settled 970, the CSR is 97%.
Deductible
कटौती राशि🗣 Amount jo aapko khud pay karni padti hai before insurer pays
The amount you must pay out of pocket before the insurer starts paying. Higher voluntary deductible = lower premium.
Example:
₹5,000 deductible on ₹50,000 claim → you pay ₹5,000, insurer pays ₹45,000.
Premium
प्रीमियम🗣 Insurance ke liye har saal/joar dena wala amount
The amount you pay annually, half-yearly, quarterly, or monthly to keep your insurance policy active.
Example:
You pay ₹12,000/year for a ₹5 lakh health insurance policy.
Solvency Ratio
देयता पर्याप्तता अनुपात🗣 Insurer kitna financially strong hai claims pay karne ke liye
A measure of an insurer's financial health. IRDAI mandates minimum 1.5 (150%). Higher solvency = more financially stable insurer.
Example:
₹150Cr assets, ₹100Cr liabilities → Solvency ratio 1.5 (150%).
Exclusion
अपवर्जन🗣 Wo conditions jo policy cover NAHI karti
Specific conditions, treatments, or situations NOT covered by your insurance policy. Claims for excluded items will be rejected.
Example:
Cosmetic surgery, self-inflicted injuries, and war are common exclusions.
ICR (Incurred Claims Ratio)
व्यय क्लेम अनुपात🗣 Premium collection vs claims paid ka ratio
The ratio of total claims paid to total premium collected. ICR between 60-90% is healthy. Above 100% means insurer is paying more than earning.
Example:
₹100Cr premiums collected, ₹75Cr claims paid → ICR is 75%.
Free-look Period
मुफ्त देखने की अवधि🗣 15-30 din policy return karne ka right — full refund
A 15-30 day window after receiving your policy document during which you can return the policy for a full refund.
Example:
Buy policy online, read terms, cancel within 15-30 days for full refund.
Endorsement
अनुमोदन🗣 Policy mein changes ka official document
A written amendment to an insurance policy that changes its terms, conditions, or coverage. Legally binding once issued by the insurer.
Example:
Adding your newborn baby to your health insurance through an endorsement.
Grace Period
अनुग्रह अवधि🗣 Premium due date ke baad extra time — policy lapse nahi hoti
The extra time (15-30 days) after the premium due date during which you can pay without the policy lapsing.
Example:
Premium due Jan 1st — you have until Jan 31st to pay without losing coverage.
Sum Insured
बीमित राशि🗣 Maximum amount insurer claim pe pay karega
The maximum amount the insurer will pay in case of a claim. For health = total medical coverage. For motor = IDV.
Example:
₹10L sum insured health policy → maximum claim payout is ₹10L per year.
Underwriting
अंडरराइटिंग🗣 Insurer aapka risk assess karta hai — premium decide karta hai
The process by which an insurer evaluates your risk profile to decide whether to offer coverage and at what premium.
Example:
30-year-old non-smoker gets preferred rates. 50-year-old smoker pays 50-100% more.
Must-Know Terms Before Buying Insurance
Yeh terms directly aapke premium, claim payout, aur policy selection ko affect karte hain. Bina samjhe insurance mat khareedein.
IDV
Vehicle ki market value. Higher IDV = higher premium lekin better claim payout.
💡 Always ensure fair IDV — insurers ko lower karne mat dein.
NCB
Discount on OD premium for claim-free years (20-50%). Belongs to you, not the car.
💡 Protect your NCB — NCB Protection add-on consider karein.
PED
Pre-existing diseases. Honestly declare karna zaroori — chhupane pe claim rejection.
💡 Declare ALL medical history. IRDAI caps PED wait at 3 years.
CSR
Claims Settlement Ratio. Higher CSR = insurer more likely to approve your claim.
💡 CSR above 95% (life) ya 87%+ (health) wale insurers choose karein.
Zero Dep
No depreciation cut on parts. Saves 30-50% on claim amount.
💡 Must-have for cars under 5 years. Costs 15-20% extra premium.
Copay
Fixed % you pay during claims. Lower copay = higher premium.
💡 Avoid copay if possible, especially if under 60.
Insurance Terminology Strategy
“Insurance terms samajhna is the difference between buying right policy aur paisa waste karne mein. 5 most impactful terms: IDV (max payout set karta hai), NCB (up to 50% premium savings), PED (non-disclosure = claim rejection), CSR (insurer reliable hai ya nahi), aur Zero Dep (car claims mein lakhs bachata hai). Agar yeh 5 terms samajh liye, toh 90% policyholders se better decisions loge.”
Insurance Jargon se Confused?
IRDAI-certified advisor Himanshu Paliwal se Hindi, English, ya Hinglish mein personalized explanations lo. WhatsApp pe free consultation.